Ireland's sovereign borrowing costs rise amid expectation of further interest rate hikes

European Central Bank to continue to raise interest rates in fight against inflation

ECB chief economist Philip Lane, the former Irish Central Bank governor, over the weekend added to the hawkish sentiment by saying the ECB could raise interest rates next year. Picture: Sam Boal/RollingNews.ie

The market cost of borrowing for Ireland and for other governments across Europe rose on Monday on expectations the European Central Bank is intent on pushing official interest rates higher again in the fight against inflation.

The yield on Ireland's 10-year bond rose to 2.38%, up significantly in the session. The implied cost of borrowing for many governments also rose.